November 7: The interest rates of banks will decline if the banks and financial institutions are not allowed to maintain fixed deposits for less than one year, according to Excel Development Bank.

The development bank made such suggestions mid protests by industrialists, who have hit the streets against the rising interest rates of banks.

According to Excel  Development Bank, the cost of maintaining bank deposits is increasing and therefore suggested that the fixed deposits should not be less than one-year period. The bank is of the view that such accounts should not be allowed to pre-mature before a minimum of one year. This, according to the bank, can reduce the base rate of banks.

Excel Development Bank said that BFIs are currently involved in unhealthy competition to attract deposits, which according to the bank should not be encouraged.